KNR Constructions (532942) Q2 25/26 earnings summary

Executive summary

• H1 FY26 saw sluggish project awarding and muted execution due to extended monsoon, but a strong pipeline and government infrastructure focus are expected to drive a recovery in H2.

• The company has over 25 years of experience in EPC, specializing in roads, highways, irrigation, and urban water infrastructure, with a robust order book of Rs. 82,159 million as of September 2025.

• Recently secured two major EPC projects in Telangana totaling Rs. 5,319 million, not yet included in the order book.

• Received provisional completion certificates for two major road projects in July 2025.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• Q2 FY26 standalone revenue: INR 493 crore; EBITDA: INR 54 crore (10.9% margin); Net profit: INR 28 crore.

• H1 FY26 standalone revenue: INR 976 crore; EBITDA: INR 119 crore (12.2% margin); Net profit: INR 79 crore.

• Q2 FY26 consolidated revenue: INR 646 crore; EBITDA: INR 192 crore (29.8% margin); Net profit: INR 105 crore.

• H1 FY26 consolidated revenue: INR 1,259 crore; EBITDA: INR 375 crore (29.8% margin); Net profit: INR 228 crore.

• Standalone Q2 FY26 revenue declined 44% year-over-year to Rs. 4,930 million; PAT down 92% to Rs. 279 million.

Outlook and guidance

• Order inflow target for FY26: INR 8,000–10,000 crore, with a mix of NHAI, irrigation, and state projects.

• Revenue in H2 expected at INR 800–900 crore; next year revenue could reach INR 2,500–3,000 crore if order inflow materializes.

• Strategic expansion into mining, pipeline, and potential metro/railway projects.

• EBITDA margin guidance for upcoming periods is 13–14%.

• Management remains confident of recovering dues from stalled irrigation projects, continuing execution to demonstrate compliance.